> In my experience you shouldn't need to do this. In fact, I suspect doing this creates both a taxation and legal nightmare.
Have worked with both arrangements. Much easier to deal with a US based LLC than anything that is managing payroll. For the contractor the LLC arrangement may end up being better, too because at least in the US corporations pay tax in arrears, and individuals have money withheld in advance.
> Except then you create legal issues, since there are likely legal issues with a company you run hiring another company you run.
For a simple business, this is actually simple (at least the US part of it). Revenue - Cost yields a very modest profit in the US so there's probably not going to be a lot of tax liability. Not sure what the nightmare is. For the group I used, their books were super simple in the US, and equally simple at home.
It’s simple to play invoices to foreign consultants. I’ve been working for American clients for years, I’d never register anything in the US and have to deal with US authorities.
Have worked with both arrangements. Much easier to deal with a US based LLC than anything that is managing payroll. For the contractor the LLC arrangement may end up being better, too because at least in the US corporations pay tax in arrears, and individuals have money withheld in advance.
> Except then you create legal issues, since there are likely legal issues with a company you run hiring another company you run.
For a simple business, this is actually simple (at least the US part of it). Revenue - Cost yields a very modest profit in the US so there's probably not going to be a lot of tax liability. Not sure what the nightmare is. For the group I used, their books were super simple in the US, and equally simple at home.